Carabao Group (CBG), the SET-listed manufacturer of Carabao Dang beverages, aims to be the leader in the energy drink sector this year amid sluggish economic growth and a high level of household debt.
"I think we will never see an economic boom anymore, with growth expected to be around 1-3% from now on," said Sathien Sathientham, chief executive of CBG.
Moreover, the purchasing power of Thai consumers has declined amid soaring household debt.
The country's household debt-to-GDP ratio was 90.9% in the third quarter of 2023, according to the National Economic and Social Development Council (NESDC).
The NESDC projects Thai economic growth of 2.7% this year.
The economy is still recovering from the pandemic, causing the revenue of CBG to drop in some of its overseas markets, said Mr Sathien.
"Cambodia is a growing market for Carabao Group, as its energy drinks have long been popular in the country. Prior to the pandemic, revenue in Cambodia was 6-7 billion baht, but post-pandemic it has remained at roughly 4 billion," he said.
The company's sales in Myanmar plummeted as a result of the political crisis that lasted two years, said Mr Sathien.
Despite the sluggish economic outlook, the group launched five beer products, aiming to achieve a 10% share of the beer market.
"The company exports its beer products to Cambodia, Myanmar and Israel because a significant number of Thais live in those countries and are familiar with the brand, particularly in Cambodia," he said.
CBG also capped the price of its Carabao Dang energy drink, which is ranked second in the market, said Mr Sathien. The price is 10 baht a bottle, while rival brands charge 12 baht a bottle, he said.
"Ten baht is a magic price, and we plan to stick with it as we aim to be the leader in the energy drink industry in Thailand by the end of this year," Mr Sathien said.
Carabao Dang's market share is 25% and the company aims to reach 27-28% to become the top player in the energy drink market, he said.